Housing Market Pains

We all knew the housing market was being artificially supported by the housing tax credit.  But no one was sure by how much.

Based on data released by the Commerce Department, sales of new homes declined 33% in May to the lowest level on record.  Compared to the peak activity seen in mid 2005 demand has declined 78%.  Median sale prices have declined 9.6% over the past year nationwide.

As painful as it is to say, this will likely mean continuing declines in housing values and additional foreclosure activity.

Solid market analysis is more important than ever in your appraisal process.